exv10w1







EXHIBIT 10.1




LaCrosse Footwear, Inc.




2010 Annual Incentive Compensation Plan Document




Objective/Overview




The LaCrosse Footwear Inc. Incentive Compensation Plan is designed to reward performance based on
the achievement of desired annual corporate results. The LaCrosse Incentive Compensation Plan
seeks to drive positive performance by targeting our greatest opportunity to increase shareholder
value, which we’ve identified as profitable sales growth. The financial metrics for 2010 are sales
growth and profitability.



LaCrosse funds the Incentive Compensation Plan solely from Company profits. The Company must
achieve at least 75% of planned/budgeted 2010 operating profit dollars in order for any Incentive
Compensation payout, regardless of the achievement of any other performance metric. Our Board of
Directors approves the budgeted net sales and operating profit annually.



The guidelines for the 2010 Incentive Compensation Plan are as follows:



Plan Year and Eligibility Requirements




The incentive compensation measurement plan year runs from January 1st through December
31st. All non-union LFI employees are eligible for the Incentive Compensation Plan
unless the individual is on a Sales Commission Plan. No employee can be on more than one incentive
compensation plan. Employees hired during the Plan year are eligible effective with their date of
hire.



The employee must be actively employed by the Company on the payment date in order to receive any
incentive compensation. Incentive compensation is not earned until paid. Payment date is
anticipated to be by the end of the first quarter of the following year, but is at the discretion
of the Company.



An employee must have a minimum individual performance rating of “3” to be eligible to receive any
incentive compensation payout. An employee whose last overall performance rating is “1” or a “2”
or is on written warning, will not be eligible to receive incentive compensation until such
time as the associated corrective action plan has been successfully completed.



Incentive Payout Calculation




The actual incentive compensation payout, if any, is based on pro-rated annual base pay (plus
overtime earnings).



An individual’s incentive target compensation is set as a percentage of annual base pay. The
incentive target compensation level for each employee is commensurate with his or her duties and
responsibilities within the organization. The target levels are reviewed annually and employees
are notified of any
changes. Changes in target incentive compensation percentage are pro-rated for the months each
rate is in effect.



 









 





Communication




To assure the success of our Incentive Compensation Plan, we will inform each participant of their
target compensation percentage and the specific corporate performance targets. In addition, we
will provide an update of the Company’s operating results and incentive compensation targets on a
quarterly basis.



Company’s Discretion




The Company has full authority to modify, change, amend or terminate this plan at its complete
discretion.



FINANCIAL COMPONENT




The financial component or metric will be computed at the corporate level as follows:



50%          net sales growth

50%          operating profit




50% — NET SALES GROWTH




Incentive payouts will be computed according to budgeted Net Sales.



	 	 	 
	Results versus Goal	 	Incentive Compensation Amount
	 
	 	 
	< 94% of budget net sales dollars

	 	No incentive compensation
payout on this portion.
	 
	 	 
	Equal to or > 94% of budget net sales dollars

	 	I.C. based on an incremental
scale. There is no cap.






50% — OPERATING PROFIT



Incentive payouts will be computed according to Corporate Operating Profit.



	 	 	 
	Results versus Goal	 	Incentive Compensation Amount
	< 75% of budget dollar amount

	 	No incentive compensation payout on entire plan.
	 
	 	 
	Equal to or >75% of budgeted Op. Profit $

	 	I.C. based on an incremental scale. There is no cap.






Extraordinary Items and Board of Director Approval:




Extraordinary items will be evaluated by the Compensation Committee of the LaCrosse Board of
Directors on a case-by-case basis as to the impact on incentive compensation. The definition of
extraordinary items are items/events which are non-recurring and are not reflective of the on-going
operation of the business as well as considered beyond management control.



 









 





All payments are subject to Compensation Committee recommendation and Board of Director approval,
after year-end financial statements have been audited.